Tax Information

I.I.T. Tax Rate

Comprehensive income tax rates

For residents, calculation of IIT on annual comprehensive income is based on progressive tax rates (see Table I below) using the following formula:

(Annual taxable income x Tax rate) – Quick deduction

Table I

Annual taxable income (CNY*) (1) Tax rate (%) Quick deduction (CNY)
0 to 36,000 3 0
Over 36,000 to 144,000 10 2,520
Over 144,000 to 300,000 20 16,920
Over 300,000 to 420,000 25 31,920
Over 420,000 to 660,000 30 52,920
Over 660,000 to 960,000 35 85,920
Over 960,000 45 181,920

(1) Notes:

Annual taxable income after deducting the standard basic deduction, specific deductions, specific additional deductions, and other allowable deductions (see the Deductions section as following).

For non-residents, IIT on employment income, remuneration for labour services, author’s remuneration, and royalties is calculated by each category on a monthly or transaction basis at the below progressive tax rates (see Table II below).

Table II

Monthly taxable income (CNY) Tax rate (%) Quick deduction (CNY)
0 to 3,000 3 0
Over 3,000 to 12,000 10 210
Over 12,000 to 25,000 20 1,410
Over 25,000 to 35,000 25 2,660
Over 35,000 to 55,000 30 4,410
Over 55,000 to 80,000 35 7,160
Over 80,000 45 15,160


Standard basic deduction

As of 1 January 2019, the amount of the standard basic deduction is CNY 60,000 per annum (i.e. CNY 5,000 for monthly tax withholding purpose).

Specific deductions

Chinese social security contributions made in accordance with the Social Security Law and contributions made to the statutory Housing Fund are deductible for IIT purpose.

Specific additional deductions

Residents deriving comprehensive income, if eligible, can claim the following specific additional deductions when calculating the annual taxable income:

Deductible item Deductible amount (CNY)
Child education 1,000 per child per month
Continued education 400 per month or 3,600 per year depending on the type of qualified continued education
Mortgage interest 1,000 per month
Rental expense 800/1,000/1,500 per month depending on the location
Elderly care Up to 2,000 per month depending on the status of the taxpayer
Major medical expense Qualified self-paid portion above 15,000 and capped at 80,000 per year for each eligible individual